You gotta wonder if they will go after the miners. I suppose other cryptos have dealt with this issue, and one with the right properties will emerge, but BTC requires huge warehouses full of computers to mine, so the decentralisation part of the argument is a bit flawed.

And the big miners happen to be in China, which is pretty convenient for the government. Not sure exactly how much of capacity is in the country, but if a lot of it gets shut down I think there's a 2 week reset window before the difficulty can come back down. If it's a large proportion it will significantly lengthen the time between blocks.

Also in the bigger picture, if illicit movements bother the Chinese, will they pressure other countries to stop allowing BTC?